India’s Yes Bank has issued a commercial paper valued at INR 100 Cr with the help of blockchain technology. The commercial paper has been issued for natural resources conglomerate Vedanta Ltd.
Blockchain for issuing commercial paper: how is it useful?
Commercial paper is an unsecured financial instrument in the form of a promissory note.
With Yes Bank’s commercial paper, the blockchain platform will make sure the system for the issuance and redemption of the commercial paper is efficient, secure and transparent. This technology will also minimize the labor process. What normally takes hours will soon take minutes, profiting both customers and shareholders.
For a developing country like India, it may be a new start in the field of innovative technologies and if it works, other financial institutions may be influenced to adopt blockchain technology as well.
Can blockchain make the internet safer?
It is hard to argue with enhancing “the safety and transparency” of financial instruments.
As companies like Facebook and Google store increasingly large amounts of our data either for sale to third parties or for monitoring and predicting our purchase patterns or viewing use in the future, blockchain could provide security to our data that is sorely lacking. If today, Yes Bank is using blockchain for commercial paper, then in the future other financial institutions may use it for their business as well, leading, hopefully, to a more data-secure future.